Earnings Per Share

6 Months Ended

Jun. 29, 2019

Basic net earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares assuming dilution. Dilutive common shares outstanding is computed using the Treasury Stock method, and in periods of income, reflects the additional shares that would be outstanding if dilutive stock options were exercised for common shares during the period.

Earnings per share (in millions, except share data):



	Three Months Ended				Six Months Ended
	June 29, 2019		June 30, 2018		June 29, 2019		June 30, 2018
Basic:
Net income	$	124	$	70	$	239	$	179
Weighted-average shares outstanding	54,027,576		53,537,876		53,965,181		53,414,267
Basic earnings per share	$	2.28	$	1.31	$	4.43	$	3.35

Diluted:
Net income	$	124	$	70	$	239	$	179
Weighted-average shares outstanding	54,027,576		53,537,876		53,965,181		53,414,267
Dilutive shares	621,123		717,831		637,191		719,843
Diluted weighted-average shares outstanding	54,648,699		54,255,707		54,602,372		54,134,110
Diluted earnings per share	$	2.26	$	1.29	$	4.37	$	3.30

Anti-dilutive options to purchase common shares are excluded from diluted earnings per share calculations. Anti-dilutive options consist primarily of stock appreciation rights (“SARs”) with an exercise price greater than the average market closing price of the Class A Common Stock. There were 61,239 and 86,726 anti-dilutive shares for the three months ended June 29, 2019 and June 30, 2018, respectively. There were 32,882 and 87,310 anti-dilutive shares for the six months ended June 29, 2019 and June 30, 2018, respectively.